To review the Cardano cryptocurrency, you need to jump back to 2017. It was in September of this year that a new project called Cardano ADA was launched.
One of the founders of the project was Charles Hoskins, who was among the developers of Ethereum. Charles left the project even before its launch and, together with his partner D. Wood, created his own company.
The project was based on scientific philosophy, the study of which took place in three world universities:
The features of Cardano include the possibility of continuous improvement of the platform built into the algorithm through soft fork. Very few existing blockchain projects have this feature.
Differences between Cardano and Bitcoin and Ethereum
The creators of the third generation virtual currency Cardano took into account all the shortcomings of the predecessor cryptocurrencies: Bitcoin is the first generation cryptocurrency and Ethereum is the second generation.
ADA is based on the Ouroboros algorithm, which is secure, reduces energy costs, and ensures fast transaction processing.
If Bitcoin is primarily a cryptocurrency, and Ethereum is a platform, then Cardano is their union, which has improved functionality in both areas. Cardano has all the advantages of Bitcoin and Ethereum, while not being a blockchain of these cryptocurrencies.
Another significant difference is the use of a different consensus algorithm. Bitcoin and Ethereum use the PoW algorithm – proof of work, while Cardano mining is based on proof of stake – PoS.
Where to buy Cardano
You can buy ADA on the Bittrex or Binance cryptocurrency exchange by exchanging it for Bitcoin or Ethereum. To do this, you need to register on the exchange, buy Bitcoin or Ethereum, and then exchange them in the market at the rate. When exchanging ADA/BTC or ADA/ETH, two types of rates are available:
- Limited – the deal is executed when the price specified in the order is reached;
- Market – the transaction is made instantly.
To store cryptocurrency, it must be withdrawn to a personal wallet.
How to mine Cardano
Mining Cardano ADA is very different from mining Bitcoin or Ethereum. To understand how to mine Cardano, you need to understand the distinctive features of the PoS algorithm.
The PoS algorithm means that a random ADA owner receives a reward for calculated blocks. At the same time, the more coins the user has in his account, the higher the chance of getting cardano. PoS allows you to mine without buying powerful, expensive hardware.
When mining Cardano ADA with a video card, as well as other cryptocurrencies, financial loss errors are minimized. Description of the Cardano cryptocurrency mining process:
- Sets the generation of a special or random value by the voter;
- Secrecy proof message is generated;
- The voter enters the secret key and passes it on to other participants;
- These commitments are made into a block, followed by a discovery phase;
- At the end of the process, the leader slot is selected by FTS.
To increase the chances of participants, miners are united in pools. The slot leader confirms the block and moves on to the next arbitrary slot leader. When the Cardano mining period is over, the rewards collected in the pool are distributed among the slot leaders.
Thus, Cardano ADA mining resembles a lottery, in which decisions are made by algorithms that bring profit to the user.
There is no special program for mining Cardano. At the same time, users have the opportunity to mine coins through a crane. Free Cardano is a faucet for free distribution of Cardano. Cryptocurrency is distributed every 60 minutes. In order to start earning, you need to register on the site https://freecardano.com.
How to create a cardano wallet
To store ADA tokens, a universal Cardano wallet has been developed – Daedalus, which can be installed on a PC with a Windows or MacOs operating system.
To use the Cardano ADA wallet, you need to download it from the official website daedaluswallet.io. After downloading the .exe file, you need to select:
- Application language;
- Installation folder;
- Agree to the terms of the license agreement.
Next comes the process of copying and synchronizing files, which may take some time. Once the process is complete, you can create an ADA wallet. Particular attention should be paid to the safety of the password and secret phrase for data recovery.
Daedalus does not have a Russian language for installation, but the whole process is quite simple and hassle-free. After the wallet is created, the dialog box displays an address in the Cardano network, to which you can transfer ADA in order to replenish the balance.
Cryptocurrency development prospects
The ambitious plans of the developers are aimed at bringing ADA to the level of control over complex computing systems, such as online casinos or other gambling games, as well as turning Cardano into an intermediary between fiat money and cryptocurrency.
At the same time, the cryptocurrency faces a high level of competition from other digital currencies.